Israel house prices fall 1.8% in the year to August 2026
Israeli home prices slipped to an index of 590.0 in July-August 2026, down 1.8% on a year earlier and the fourth consecutive reading below 600 points.
The facts
- Israel's Central Bureau of Statistics put its dwellings price index at 590.0 for July-August 2026, 0.6% below the previous two-month period and -1.8% below a year earlier.
- The three readings before it were 592.4 for April-May, 593.0 for May-June and 593.6 for June-July, so the index has now spent four consecutive periods below 600.
- A year earlier, in July-August 2025, the index stood at 600.8.
- The highest reading in the series is 609.8, recorded for January-February 2025.
- The index runs on a 1993=100 base, and every reading from May-June 2026 onwards is marked provisional and updated once a month.
- In the same monthly price release, the housing component of the consumer price index was 3.8% higher than a year earlier, against headline inflation of 1.6%.
What it means for your money
- Entry prices keep drifting down, 19.8 points below the 609.8 peak, so entering gets cheaper. But the same drift works against resale value.
- The housing component of consumer prices moved the other way, up 3.8% against 1.6% headline inflation, which supports rental income while purchase prices soften.
- For an owner already holding, the same drift erodes resale value, and because the figures cover a two-month period and arrive in arrears, the position is always read late.
What to watch
- Whether the provisional readings are revised upwards, since the bureau updates them every month.
- The next monthly release and whether the index settles below 590.0.
Sources: Central Bureau of Statistics of Israel, Dwellings Price Index, Table 2.1, July-August 2026, publication date 15/10/2026 https://www.cbs.gov.il/he/publications/Madad/DocLib/2026/price09aa/aa2_1_e.pdf; Central Bureau of Statistics of Israel, Consumer Price Index by groups, Table 2.1, September 2026 https://www.cbs.gov.il/he/publications/Madad/DocLib/2026/price09a/a2_1_e.pdf